Gold coins have a high traditional value. Gold bars have little historical or traditional value and are sold solely for their gold content. Gold coins are known to have a more sentimental value than gold bars both historically and culturally. In short, gold coins may be more ideal for you than gold bars if you want to invest in something with a more historical and cultural value.
Once again, gold coins have more collectible value than gold bars. Gold bars tend to be cheaper to manufacture compared to gold bullion coins. Therefore, they have a lower premium compared to gold bullion coins. The larger the gold ingot, the lower its premium.
A one-kilo gold ingot will have a lower manufacturing cost than 10 x 100 gram gold bars. If you're looking to add bullion coins to your investment portfolio, this has many advantages. The main advantage of buying gold coins is that they are usually more comfortable than gold bars. This makes it easier to sell gold coins in large quantities compared to selling a 1 kg gold ingot.
While gold bars offer you the best option if you want to preserve your wealth, gold coins offer the best value when it comes to selling. If you've regularly invested in gold, it can be easy to transfer your assets to the next generation in your family. The idea here is that the value of gold bars is in the gold itself and that can only change based on real-time spot gold prices. Unlike gold bars, where you may have to sell all the assets in your portfolio, buying small gold coins avoids this problem.
One disadvantage of buying gold bars in your investment portfolio is that they are usually larger and more expensive. Understanding the spot price and premium of gold will help you decide how much you want to spend on your investment. Alternatively, if gold coins are not part of your investment strategy with this precious metal, then it's worth buying gold bars. So, from an investment perspective, buying gold coins means you'll get less gold for what you pay.
This means that you can divide your investment in sovereign gold coins into smaller pieces, which can be sold over time. By buying gold bars, you can protect your finances in the future, in case they need access to funding. By investing in a large amount of gold, this can mean significant savings if you choose to buy ingots. For most UK bullion investors, the ideal balance between value and flexibility would be 100g gold bars and 1-ounce gold bars.
The decision to invest in gold coins or ingots should generally be influenced by your objective as an investor.